Business is one such field where the people are busy and they have literally no time for themselves. In the line of business, you think about your business projects before even thinking about yourselves. This is the reason that most of the businessmen don’t have a proper future plan regarding their business. They plan for the projects and the expansions but they forget to consider the situation when they won’t be there. Who would take care of their business? How would the business run after their death? This thought never occurs to a businessman.
Research says that 30% of the business owners do not have a business plan, and if they do then it has not been updated yet. This is a very sad scenario in this respect as business people are the ones who need estate planning more than anyone. Thus, this article is here to help all such business people to make the proper choices while estate planning.
Why Is Estate Planning Required?
The great empire that you have built all these years through hard work and persistence, needs to be protected when you are gone, this is one of the primary causes as to why estate planning is required. There needs to be someone or a group of people who can hold on to your legacy and take your company or organization to a new height. This can only be done through estate planning.
Also, if you have children then you need to provide them the financial stability even when you are not there. Giving the company assets to the guardian (in case they are minors) will be the right choice in that direction.
Estate planning is all about providing financial security to your family after you are gone. This is why whether you are in business or not, you need to have an estate plan for the betterment of your family.
Tips for Estate Planning In Business
Have A Will
A will is a proper documentation which will include all your decisions that must be fulfilled after your death. There are some elements that must be considered in a will. First is the distribution of your assets. You need to mention it clearly as to how do you want to divide your assets and among whom. Also, regarding your company, you need to decide who gets the company shares and in what percentage. If you want to pass on the company to another person, you need to do that through a will.
The second thing that you need to consider in your basic estate planning is having a power of attorney and a health care attorney. In case if you come up with some mental issues and are unable to take decisions of your own, your power of attorney can take all the financial decisions on your behalf and the health care attorney will be able to make medical decisions on your behalf. This is a very critical choice because you need to have the most trustworthy people in your life to do this job.
You Plan for Tax Efficiency
Now the government has tax laws that makes you pay a small amount of tax before your assets or properties are handed over to your beneficiaries. You need to plan your decisions in the right way so that you have to pay minimum taxes to the government. You need to be in constant touch with your lawyers and financial assistance regarding such decisions. But with a well- structured estate plan, you can definitely come up with the best taxation plan possible.
Manage Family-Owned Business
Family-owned businesses cause a lot of issues in estate planning. In case you have two children there is always a chance of a fight between the two regarding the asset distribution. So before making the will you need to carefully give a thought about what can be the repercussions of your decisions. You need to have a constant financial counsellor guide you all throughout.
Also, you need to keep in mind that no matter what, the family business must be kept within the bloodline as well.
Estate planning in business is tough and tricky but with proper guidance, it can be done. We hope that this article will help you, while making your estate plan for business. Call us today to speak with an experienced Estate Planning lawyer to see how you and your business can benefit from proper estate planning.